DELHI GYMKHANA CLUB Vs. COMMISSIONER

JUDGEMENT

(1.) The petitioner questions the validity of the order dtd. 1/7/2014 passed by the Commissioner, (Entertainment and Luxury Tax) [Commissioner], the first respondent herein and which has in turn affirmed the orders of assessment made for Financial Years [FYs] 2009-10, 2010-11 and 2011-12, holding it to be exigible to tax under the Delhi Tax on Luxuries Act, 1996 [the Act].

(2.) Undisputedly, the petitioner, which claims to be a 'Club', constituted as a not-for-profit company as contemplated under Sec. 25 of the erstwhile Companies Act, 1956 [the 1956 Act], had neither obtained registration under the Act nor had it paid any tax thereunder. The view as taken by the Assessing Authority as embodied in its order of assessment dtd. 19/3/2013 was affirmed by the First Appellate Authority on 21/5/2014. It is in that backdrop that the matter came to be laid before the Commissioner.

(3.) The petitioner asserts that it is a social club, governed by the principle of mutuality and it stood duly incorporated as such in terms of Sec. 25 of the 1956 Act. It is the case of the petitioner that it is a mutual benefit association and its various activities are confined to its members. Resting the challenge to the order passed by the first respondent on the principles of mutuality as enunciated in respect of such clubs and associations, it is contended that the respondent has clearly erred in holding it liable to pay luxury tax.